diff --git a/scripts/local-tracing/docker-compose.yaml b/scripts/local-tracing/docker-compose.yaml
index b245530c9ee..4f0bbd9995a 100644
--- a/scripts/local-tracing/docker-compose.yaml
+++ b/scripts/local-tracing/docker-compose.yaml
@@ -11,7 +11,7 @@ services:
 
   # Collector
   otel-collector:
-    image: docker.io/otel/opentelemetry-collector-contrib:0.115.1@sha256:d2da12c4336a79758826700be9e21ecf4a9f7d945b7f8a58ba55ee3fa45427c8
+    image: docker.io/otel/opentelemetry-collector-contrib:0.120.0@sha256:85ac41c2db88d0df9bd6145e608a3cb023f5d8443868adbfbbf66efb51087917
     command: ["--config=/etc/otel-collector-config.yaml"]
     volumes:
       - ./otel-collector-config.yaml:/etc/otel-collector-config.yaml